**New Foreign Currency Fluctuation Transactions (Effective FY 2019)**

**B450**	To record a gain on current year unpaid obligations due to fluctuation of foreign currency exchange rates on a non-monetary transaction, where excess obligations due to the rate variance are deobligated at the time of disbursement.

**Comment:** Also post, reverse to USSGL TC B134 for direct appropriations.  Post this transaction immediately preceding disbursement (USSGL TC B110).

**Budgetary Entry**

Debit 490100 Delivered Orders – Obligations, Unpaid

 Credit 445000 Unapportioned Authority

 Credit 451000 Apportionments

 Credit 461000 Allotments – Realized Resources

**Proprietary Entry**

Debit 211000 Accounts Payable

   Credit 719000 Other Gains

*Justification: This transaction code is necessary to standardize the accounting treatment for gains and losses related to foreign currency fluctuation of non-monetary assets in the normal course of business*

**B452**	To record a loss on current year unpaid obligations due to fluctuation of foreign currency exchange rates on non-monetary transaction, where additional US equivalent dollars are obligated to cover the rate variance at the time of disbursement.

**Comment:** Also post USSGL TC B134 for direct appropriations.  Post this transaction immediately preceding disbursement (USSGL TC B110).

**Budgetary Entry**

Debit 461000 Allotments – Realized Resources

 Credit 490100 Delivered Orders – Obligations, Unpaid

**Proprietary Entry**

Debit 729000 Other Losses

 Credit 211000 Accounts Payable

*Justification: This transaction code is necessary to standardize the accounting treatment for gains and losses related to foreign currency fluctuation of non-monetary assets in the normal course of business*

**D618**	To record a gain on prior-year unpaid obligations due to fluctuation of foreign currency exchange rates on a non-monetary transaction, where excess obligations of a prior year are adjusted downward due to the rate variance at the time of disbursement.

**Comment:**Prior-year adjustments are used only in year 2 or later. Record USSGL account 465000 if the authority has expired.  Also post reverse to USSGL TC B134 for direct appropriations.  Post this transaction immediately preceding disbursement (USSGL TC 

B110).

**Budgetary Entry**

Debit 497100 Downward Adjustments of Prior-Year Unpaid Delivered Orders – Obligations, Recoveries

 Credit 445000 Unapportioned Authority

 Credit 451000 Apportionments

 Credit 461000 Allotments – Realized Resources

 Credit 465000 Allotments – Expired Authority

**Proprietary Entry**

Debit 211000 Accounts Payable

 Credit 719000 Other Gains

*Justification: This transaction code is necessary to standardize the accounting treatment for gains and losses related to foreign currency fluctuation of non-monetary assets in the normal course of business*

**D626** 	To record a loss on prior-year unpaid obligations due to fluctuation of foreign currency exchange rates on a non-monetary transaction, where excess obligations of a prior year are adjusted upward due to the rate variance at the time of disbursement.

**Comment:**Prior-year adjustments are used only in year 2 or later. Record USSGL account 465000 if the authority has expired.  Also post USSGL TC B134 for direct appropriations. Post this transaction immediately preceding disbursement (USSGL TC B110).

**Budgetary Entry**

Debit 461000 Allotments – Realized Resources

Debit 465000 Allotments – Expired Authority

 Credit 498100 Upward Adjustments of Prior-Year Delivered Orders – Obligations,     Unpaid

**Proprietary Entry**

Debit 729000 Other Losses

 Credit 211000 Accounts Payable

*Justification: This transaction code is necessary to standardize the accounting treatment for gains and losses related to foreign currency fluctuation of non-monetary assets in the normal course of business*

**IRC Handout December 4, 2018**